Document Splitting in SAP New GL #4 SAP delivered pre-configuration for Document Splitting in SAP new GL

Document Splitting in SAP New GL #4 SAP delivered pre-configuration for Document Splitting in SAP new GL

Overview

SAP has delivered a set of pre-configured Document Splitting rules that should cater to most business scenarios. SAP customers can use Document Splitting with very little “localised” configuration. In this blog, I will explain SAP’s pre-configured Document Splitting rules. 

In many business scenarios, the SAP delivered pre-configured document splitting rules may not suffice the requirements of business. Customising document splitting rules is discussed in another blog.

Blogs on Document Splitting

In my series of blogs on document splitting, I intend to explain and elaborate the concepts behind Document Splitting and highlight using examples how document splitting can be achieved for various complex business processes. I use Profit Centre as a “scenario” to explain the functionalities; however all processes that apply to Profit Centre also apply to the other scenarios (Segment, Business Area).

To identify the series of blog, I have categorised the blogs under SAP > Document Splitting. If you have questions/ comments/ suggestions, please send me your comments in the form below. Sharing your questions and experience using comment box below will help other readers to gain additional knowledge involved in this functionality.

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SAP delivered pre-configured rules

SAP ECC delivers pre-configured splitting rules that can be used with little “local” configuration. The rules can also be modified in the configuration to suit specific business requirements/ processes. As far as possible, use the pre-configured rules for your business.

If you have to create custom splitting rules, SAP recommends you copy the SAP standard delivery to a custom splitting rule and then modify them. We will look at customising the standard pre-configured rules in a separate blog.

You have to complete the below configuration to activate Document Splitting

 

Assign Scenarios to Ledgers

You should assign the required scenarios to ALL required ledgers; assigning scenarios to ledgers will determine which fields SAP will update when a financial document is posted. We have looked at the definition of a scenario in a previous blog. This configuration defines which fields will be split in the Document Splitting process.

This assignment can be configured in IMG menu path

Financial Accounting (New) > Financial Accounting Global Settings (New) > Ledger > Assign Scenarios and Customer Fields to Ledgers

 

Define Document Splitting Characteristics for General Ledger Accounting

The system proposes characteristics based on scenarios assigned to ledgers. Select the characteristics for which you want financial documents to be split.

For each characteristic that you want SAP to perform Document Splitting, decide on whether:

  • You want the field to be self-balancing. In a previous blog, we saw that if the total of the characteristic in any given financial document does not net to zero, then the system posts a balancing entry into a clearing account for that characteristic.
  • The partner field for the characteristic – this setting is strongly recommended if you have selected zero balance field. Selecting a partner field will ensure that the system posts the clearing document with reference to the partner or the offsetting field value. This will allow the owner of one profit centre to easily identify which (partner) profit centre the document posting comes from.
  • If you want the field values are populated after document split. If you select this indicator and the system is not able to populate values, then the document posting will be rejected with an error message.

Configuration can be performed in IMG menu path

Financial Accounting (New) > General Ledger Accounting (New) > Business Transactions > Document Splitting > Define Document Splitting Characteristics for General Ledger Accounting

Document Splitting Characteristics for GL

Define Document Splitting Characteristics for General Ledger Accounting

 

Define Document Splitting Characteristics for Controlling

Document Splitting supports certain subsequent processes whereby the system transfers Document Splitting characteristics from the original process to the subsequent process. Controlling (CO), for example, takes over the split line items. This means if the subsequent processes post CO-relevant items, they can also transfer the CO account assignments from the original process to these line items. Controlling transfers these line items and the account assignments.

Examples of subsequent processes are Cash Discount, realised foreign exchange differences, individual adjustments to Vendor/ Customer lines. We will review and understand more details of Subsequent Processes in a later blog.

Configuration can be performed in IMG menu path

Financial Accounting (New) > General Ledger Accounting (New) > Business Transactions > Document Splitting > Define Document Splitting Characteristics for Controlling

Document Splitting Characteristics for Controlling

Define Document Splitting Characteristics for Controlling

 

Classify G/L Accounts for Document Splitting

In this step, G/L Accounts are classified by Item Category. This will allow the system to perform Document Splitting based on Item Category derived on lines of a financial document. You cannot define additional item categories; you can assign G/L Accounts from your chart of accounts to pre-delivered Item Categories.

You must assign the following accounts in Customizing to the item categories:

  • Balance sheet accounts — item category Balance Sheet Account (01000)
  • Bank accounts (cash fund) — item category Cash Account (04000)
  • Expense accounts — item category Expense (20000)
  • Revenue accounts — item category Expense (30000)

The assignment of all other accounts is predefined by the system in table Allocation: Internal Key – Item Category (SAP) (T8G16). You can override the assignment of these accounts (for example, to assign the special G/L accounts for customers or vendors to the detailed item categories 02100 or 03100). To do this, use the Override Internal Item Category Derivation indicator.

Configuration can be performed in IMG menu path

Financial Accounting (New) > General Ledger Accounting (New) > Business Transactions > Document Splitting > Classify G/L Accounts for Document Splitting

Classify GL accounts for document splitting

Classify G/L Accounts for Document Splitting

 

Classify Document Types for Document Splitting

In this step, Document Types are assigned to Business Transaction and Business Transaction variant. This will ensure that the document type is included in the Document Splitting process.

There are certain restrictions that need to be understood:

  • One restriction is that each business process should be posted by a unique document type – mixing of business processes within one document type is not allowed. For example, you cannot post Vendor Invoice and Customer Credit Memo with document type KR. If you use document type KR for Vendor Invoice, you should configure Customer Credit Memo to another document type.
  • To ensure the splitting rule is used appropriately, the system checks item categories that must be available and that must not be available during posting. The item categories are defined in the Business Transaction Variant configuration. For example, in customer invoice posting the following item categories are allowed: customer, value added tax, withholding tax, expense, revenue, exchange rate differences and company code clearing.
  • You cannot define your own business transaction. If you need to use same document type for more than one business transaction, you should create your own custom document type rather and assign the business transaction.

Configuration can be performed in IMG menu path

Financial Accounting (New) > General Ledger Accounting (New) > Business Transactions > Document Splitting > Classify Document Types for Document Splitting

Classify Document Types for document splitting

Classify Document Types for Document Splitting

 

Define Zero-Balance Clearing Account

For characteristics that you defined zero-balance setting in Define Document Splitting Characteristics for General Ledger Accounting, you can configure the G/L account where the clearing posting is made.

We will discuss more on zero-balancing functionality in a separate blog.

Configuration can be performed in IMG menu path

Financial Accounting (New) > General Ledger Accounting (New) > Business Transactions > Document Splitting > Define Zero-Balance Clearing Account

configure zero balancing posting

Define Zero-Balance Clearing Account

 

Activate Document Splitting

SAP allows you to activate Document Splitting for the entire client. If, after active document splitting has been performed, there are still line items without account assignments for the Document Splitting characteristics defined, the system can add the missing account assignments using inheritance and standard account assignments.

The Standard Account Assignment is used to assign a constant Profit Centre to line items that have not derived/ split by Profit Centre. We will discuss the impact of Standard Account Assignment in conjunction with the use of Constants in Document Splitting in a separate blog.

Configuration can be performed in IMG menu path

Financial Accounting (New) > General Ledger Accounting (New) > Business Transactions > Document Splitting > Activate Document Splitting

activate document splitting

Activate Document Splitting

Company Codes can be excluded from the activation in the next screen in this configuration:

deactivate document splitting by company code

Activate Document Splitting – exclude company codes

Define Post-Capitalization of Cash Discount to Fixed Assets

If a cash discount is applied to a payment of Vendor Invoice that was relevant to asset capitalisation, this setting will apply the cash discount to asset account instead of cash discount account. We will look at this process in detail in a subsequent blog on Document Splitting for Cash Discounts.

Configuration can be performed in IMG menu path

Financial Accounting (New) > General Ledger Accounting (New) > Business Transactions > Document Splitting > Define Post-Capitalization of Cash Discount to Fixed Assets

Define Post-Capitalization of Cash Discount to Fixed Assets

Define Post-Capitalization of Cash Discount to Fixed Assets

Edit Constants for Non-assigned Processes

In some processes, it is not possible to derive the correct account assignments for the Document Splitting characteristics of General Ledger Accounting when posting the document. This could be a case where the required information is not yet available when the posting is made (for example, for payments without invoice reference). You can activate the standard account assignments to allow a constant value to be populated for processes where the Profit Centre is not assigned.

Assign constant to Document splitting

Edit Constants for Non-assigned Processes

We will look at this process in detail in another blog on Use of Constants in Document Splitting.

Conclusion

There is little to configure if you decide to use the SAP delivered pre-configured rules. The pre-configured rules work for most business scenarios.

Once you understand the configuration rules of Document Splitting in new GL, it is easier to understand how to customise these rules to suit your business requirements. That is the topic of my next blog.

 

Please Share

I hope this blog has helped you understand the configuration behind document splitting. Please do leave your comments below whether this article was helpful; and whether you have any suggestions/ comments; or if you would like to share your experience with document splitting.

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View my presentation on Slideshare

Document splitting in New GL in SAP

 

Index of my blogs on Document Splitting in new GL in SAP ECC

Overview of new GL Document Splitting Process

Architecture of SAP new GL

The Design driving the new GL Document Splitting process

SAP delivered pre-configuration for document splitting in SAP new GL

The semantics of SAP new GL document splitting process

Set up Zero-balancing for SAP new GL

Customise Document Splitting rules

Use Constants for Nonassigned Processes in SAP new GL

Customise cross company code postings for document splitting

Document Splitting in Cross company code vendor payment

Can SAP ECC newGL replace your existing Special Ledger?

 

_____________________________________________________________________________________________________________________________

Rajesh has implemented new GL and Document Splitting for several customers. Rajesh has 12 years experience implementing SAP / IT / BPM Finance solutions for several customers globally; he also has 7 years experience working in the business in Finance and Accounting functions. His business process knowledge combined with his IT expertise enables him to provide his customers with best-of-breed advice on business process / IT implementations.

View Rajesh Shanbhag's profile on LinkedIn

 

Comments

  1. Thank you for the great articles on document splitting it has been extremely helpful…..

    I would however like to know what the system implications and account implications are if I decide to change Document Splitting Characteristics for General Ledger Accounting to profit center 7 years after GO Live. Currently the Document Splitting Characteristics for General Ledger Accounting is SEGMENT.

    • Hi Roperta
      What change do you want to make? Do you want to remove this characteristic or add a new one?

      I have not made changes to characteristics in a productive system. It might be useful to read OSS note 891144 – Point 6 speaks of changes to characteristics:


      6. Document splitting characteristics are supplemented or changed subsequently.

      The document splitting characteristics are taken into account only after you activate or transport the change. This new characteristic is not filled in the case of newly posted subsequent processes for documents posted before the change. This also applies to the additional characteristics for Controlling and the reactivating of fixed assets.

      A subsequent activation of the Zero Balance Creation for a document splitting characteristic takes effect only once you have activated or transported the change. Before the activation, make sure that the financial statement for this characteristic balances to zero by means of a transfer posting.”

      This is all I can help with unfortunately.

      Rajesh

  2. Hi Rajesh,

    I have a question on Document Splitting rules..

    In SPRO>Document Splitting rules.. In Item categories to be edited, we have processing categories, 0,1 and 2.

    I am aware about the function of 0 and 1 but do not know what is 2, ie: “Splitting based on Current Account Balance” is used for

    Can you share some info on that?

    Thanks & Regards,

    kavita

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